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The British Pound continued to sink against the US Dollar, with prices sliding to the weakest level in close to five years. Near-term support is at 1.4597, the 61.8% Fibonacci expansion, with a break below that on a daily closing basis exposing the 76.4% level at 1.4463. Alternatively, a turn above the 50% Fib at 1.4706 opens the door for a challenge of trend line support-turned-resistance at 1.4826.

Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.

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